365Crypto
Indian authorities arrested two men for hiding cryptocurrency linked to a violent case that followed the collapse of BitConnect. The arrests focus on money laundering, not the original crypto scheme itself.
The Enforcement Directorate said Nikunj Bhatt and Sanjay Kotadiya helped move and conceal digital assets obtained through extortion. These funds were recovered years after BitConnect shut down and investor losses exploded.
In 2018, businessman Shailesh Bhatt planned the kidnapping of two people tied to BitConnect’s founders, according to investigators. The crime allegedly produced over 2,200 Bitcoin, 11,000 Litecoin, and large cash payments that were later laundered.
Authorities say some recovery efforts after the BitConnect collapse turned aggressive and crossed legal lines. None of the arrested individuals is accused of operating the BitConnect platform itself.
BitConnect was launched by Satish Kumbhani and promised high returns through a crypto lending program. US prosecutors later called it a $2.4 billion global fraud. Kumbhani remains missing.
Footing:
Bitcoin (BTC): a decentralized digital currency.
Litecoin (LTC): a faster cryptocurrency based on Bitcoin’s code.
Ponzi scheme: an investment scam that pays old investors with new money.
